New Delhi: The SHANTI Rules, 2026, lay down a detailed framework for nuclear liability in India, requiring operators to maintain financial protection against nuclear damage while providing limited exemptions based on the type and power level of nuclear facilities.

The rules form part of the regulatory framework under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025, or the SHANTI Act.

Also read | Draft rules under the SHANTI Act

Nuclear operators must maintain financial security

Under the draft rules, nuclear power plant operators will have to maintain an insurance policy, financial security or a combination of both to cover nuclear damage.

The financial security must remain in place until all spent fuel has been removed from the relevant storage pool.

The Centre will also constitute an expert group every five years to review the maximum limits of an operator's civil liability for nuclear damage.

How does nuclear liability work?

India's nuclear liability framework follows a strict, no-fault approach. This means an operator can be held responsible for nuclear damage regardless of whether the damage resulted from intent or negligence.

However, the framework provides specific exemptions for certain low-risk facilities, including research reactors and low-power installations.

Section 44 allows specific exemptions

Section 44 of the SHANTI Act empowers the Central Government to grant exemptions from specified regulatory and legal obligations where the associated risks are considered insignificant.

The exemptions can apply depending on the type of reactor or facility and its power level. A key consideration is whether the integrated power level at the site and within its exclusion zone remains below a threshold determined by the Central Government.

This provision creates a limited exception to the otherwise strict nuclear liability framework for facilities considered to pose relatively low risks.

Exemption does not mean zero financial responsibility

Even where an exemption is granted because the risk is considered "insignificant", the operator or licensee is not completely relieved of financial obligations.

The licensee must continue to maintain sufficient financial security, including insurance or another approved form of security, to cover other potential liabilities beyond specific nuclear damage claims.

Special conditions for foreign-designed reactors

The draft rules also prescribe conditions for nuclear plants and reactors based on foreign designs.

Such designs must have been certified or approved by the regulatory authority in their country of origin. The rules define a country of origin as one that is self-reliant in nuclear reactor design and its supply-chain ecosystem and whose regulatory approvals are trusted globally.

The reactor or plant must also be operational either in the country of origin or another foreign country.

‘In-principle approval’ before site selection

The licensing authority may grant an "in-principle approval" after admitting an application even if the site or technology has not yet been selected.

"Upon receipt of a valid 'in-principle approval', the applicant may proceed with negotiation with reactor technology vendors and for acquiring the land and other necessary infrastructure," the draft rules say.

One composite licence for the nuclear facility

The proposed framework also provides for a single composite licence covering the construction, ownership, operation and decommissioning of a nuclear power plant or reactor.

"No licence shall be applied for, granted, divided, or severed … in respect of any of those activities separately," the draft rules say.

Overall, the SHANTI Rules seek to combine a strict nuclear liability regime with narrowly defined exemptions for facilities where the government determines that the associated risks are insignificant.